Golden Arrow Resources Announces US$25 Million Sale of 75% Owned Copper Assets at San Pietro Project; Secures Capital and Retains 9,000 ha of High-Potential Gold Targets

On June 23, 2026, Golden Arrow Resources announced a definitive agreement to sell a newly formed subsidiary (NewCo) holding approximately 16,555 hectares of its San Pietro Project in Chile to Capstone Copper Corp. This sale primarily includes the copper-focused Rincones and Colla deposits and related targets. The total consideration is US$25,000,000, payable entirely in freely tradeable common shares of Capstone Copper.

Critically, Golden Arrow is not selling its entire interest. The company will retain over 9,000 hectares of highly prospective gold concessions, which will be rebranded as the Atakama Gold Project. It will also retain a 1.5% NSR royalty on the Filo Sur project. The net proceeds, after an estimated ~$6.55 million in transaction costs and taxes, will be used for corporate purposes and to fund an “expanded, well-capitalized” exploration campaign focused on these newly prioritized gold targets. The transaction requires shareholder and TSXV approval and is expected to close by the end of Q3 2026.

This transaction is a material positive development for Golden Arrow. The sale directly addresses the company’s most significant risk: a material going concern uncertainty, explicitly flagged in the FY2025 MD&A filed on SEDAR. With a cash balance of only $215,915 and negative operating cash flow of $4.99 million for FY2025, the company’s survival was contingent on raising capital.

Instead of a dilutive equity financing, management has executed a non-dilutive asset sale, securing ~US$18.45 million in net value (pre-tax estimate) in the form of liquid, large-cap Capstone Copper shares. This transforms Golden Arrow’s balance sheet from cash-poor to holding a significant, tradeable liquid asset, likely removing the going concern risk entirely. The shift in strategy—monetizing copper assets to focus purely on gold—is validated by the historical news progression. Initial gold discoveries at the Noemi target (announced Sept 2025, confirmed with trenching Jan 2026) have clearly demonstrated the potential for a standalone, bulk-mineable gold deposit, a narrative management is now fully prioritizing. This is not an expected step but a transformative corporate action.

Golden Arrow Resources is a mining exploration company and a member of the Grosso Group, focused on discovering precious and base metal deposits in South America. Its flagship asset was the San Pietro Copper-Gold-Iron-Cobalt Project in Chile, which hosts an initial Inferred Mineral Resource Estimate of 492 Mt @ 0.41% CuEq (2.5 Blb Cu, 770k oz Au). The project benefits from excellent infrastructure.

However, the company's strategic focus is now shifting entirely to the rebranded Atakama Gold Project, carved out from ~9,000 hectares of retained concessions at San Pietro. This area hosts the exciting Noemi target, where trenching in early 2026 confirmed a near-surface, bulk-mineable gold zone with standout results (e.g., 76.7m @ 1.01 g/t Au). This gold discovery is now the centerpiece of the company's value proposition. In Argentina, the company holds a portfolio of non-core, optioned projects (Filo Sur, Huachi).